Operationalizing Interaction between Firms and Regions

Regions are very different as they contain anamalgam of different resources shaped by a diversity of actors. In some extent,they are the result of interactions of different actors that can be locatedeither inside or outside them. Firms are one of the actors that assume morerelevance for the regional configuration. Indeed firms have a capacity to actbeyond any regional boundaries and a successful firm can -infect-positively the regional dynamics. But the opposite influence is also true. Theregional configuration may haveimpact on the strategic action of firms. However, theinteractions between firms and regions have not been sufficiently explained. Inach, a model aimedat providing a better understanding of this mutual influence was developed. We find that the lack ofrelational compatibility can limit firms’ effects on the region. Similarly, theinfluence of the region on firms’ performance also depends on this compatibility and on the specific characteristics of the business actors.